Managing your online shipping is a challenge for many organizations. Mainly, making the right decision on the right shipping model to adopt is a headache affair for many dispatch managers. While your products may be in high demand and attracting high volume sales, the inability to manage your shipping costs will reduce your profitability or even lead to a loss in your business. Essentially, the situation is critical for webpreneurs who have to fulfill each order by shipping. Like other online retailers, you may opt to use flat shipping as your solution. But is this a wise idea? Even though the model has several positive gains, here are 3 reasons why it is a bad idea:
The item size is the base of shipment rate setting
Are you an online merchant offering items with different sizes? If so, opting for the flat shipping can be one of the worst decisions you will ever make in your business. What you need to know is that different sizes call for varying shipping prices. An increase in the product size means an additional coin in the shipping cost. Hence, unless all your products are in the same size range, going for the flat shipping option is not a wise idea. So, opt for another option if the sizes of your products do not meet the above requirement.
No cost is fit for all
Even though your products have the same size range, they do not attract the same shipping cost. Thus, you will need to add extra coins for some items and others will save your expenses. For this reason, going for the flat shipping can be a disadvantage. For instance, if you are using the flat shipping policy, some customers may decide to order more batches as they will only pay a certain fixed amount. In the end, you will incur more expenses catering for the shipping costs that might affect your profits. Hence, you should opt for a model that allows shipping charges per batch instead of the flat rate option.
Low quality of service
Probably, the flat shipping model advocates for using a single carrier. The carrier may not have the quality of service a particular customer is demanding. Also, each customer has their own likes and preferences. In this regard, flat shipping denies you the ability to serve your customers based on their desires leading to dissatisfaction cases.
With this information, it is upon you to decide whether or not to continue using flat shipping model or opt for a better one.
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